A. Understanding PricingPrice is the amount of money charged for a product or a service. More broadly, price is the sum of all the values that customers give up to gain the benefits of having or using a product or service. Price is the only element in the marketing mix that produces revenue; all other elements represent cost. Price is also one of the most flexible marketing mix elements because prices are perhaps the easiest element of the marketing program to adjust; product features, channel, and even communications take more time. Pricing decisions are clearly complex and difficult, and many marketers neglect their pricing strategies. Holistic marketers must take into account many factors in making pricing decisions- the company, the customers, the competition, and the marketing environment. Pricing decisions must be consistent with the firm’s marketing strategy and its target markets and brand positioning. In order to decide price we need tools to facilitate the setting of initial prices and adjusting prices over time and markets.

How Companies PriceCompanies do their pricing in a variety of ways. In small companies, the boss often sets prices, in large companies, division and product line managers do or companies can establish a pricing department to set or assist others in setting appropriate prices. For any organization, effectively designing and implementing pricing strategies requires a thorough understanding of consumer pricing psychology and a systematic approach to setting, adapting, and changing prices.

Consumer Psychology and PricingUnderstanding how consumers arrive at their perceptions of prices is an important marketing priority. Here we consider three key topics- reference prices, price- quality inferences, and price endings. Global Perspective

Setting the right price for a product can be the key to success or failure. Even when the international marketer produces the right product, promotes it correctly, and initiates the proper channel of distribution, the effort fails if the product is not properly priced. A product’s price must reflect the quality and value the consumer perceives in the product. Of all the tasks facing the international marketer, determining what price to charge is one of the most difficult. It is further complicated when the company sells its product to customers in different country markets. Whether exporting or managing overseas operations, the manager’s responsibility is to set and control the actual price of goods in different markets in which different sets of variables are found: different tariffs, cost, attitudes, competition, currency fluctuations, and methods of price quotation.

...DETERMINING DEMAND According to Kotler and Keller (Marketing Strategy, 2012 P. 390); ‘each price will lead to a different level of demand and have a different impact on a company’s marketing objectives’. Generally, when the price increases, the demand tends to decrease, ceteris paribus. Customers are sensitive to price of services or items except they are low-cost, or has few substitute, or the price is small part of their total cost (Kotler and Keller, 2012). The website is...

...PricingStrategies
Competition based pricing
Setting the price based upon prices of the similar competitor products.
Competitive pricing is based on three types of competitive products:
* Products having lasting distinctiveness from competitor’s product. Here we can assume
* The product has low price elasticity.
* The product has low cross elasticity.
* The demand for the product will rise.
* Products have...

...PRICINGSTRATEGY
>>ONE OF THE FOUR MAJOR ELEMENTS OF THE MARKETING
MIX IS PRICE. PRICING IS AN IMPORTANT STRATEGIC ISSUE
BECAUSE IT IS RELATED TO PRODUCT POSITIONING.
>>PRICING AFFECTS OTHER MARKETING MIX ELEMENTS
SUCH AS PRODUCT FEATURES, CHANNEL DECISIONS, AND
PROMOTION.
GENERALLY RECOMMENDED STEPS TO BE
FOLLOWED:
• Develop marketing strategy - perform marketing analysis,
segmentation, targeting, and positioning.
•...

...﻿PricingStrategy
To set a pricingstrategy, there are number of steps taken into consideration as follows:
Step 1: Our pricing objectives are to maximize market share and increase sales volume. This strategy will be used when TrackR is being launched into the market. We charge a reasonable price in order for TrackR to be accessible in the market as quickly as possible and also to encourage the interest and...

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Market Structures and PricingStrategies
Kiona Thomas
American Public University
Econ600
Abstract
The article analyzes the four main market structures, which are perfect competition, monopolistic competition, oligopoly and monopoly. It provides a detail description of the market, as well as explains the pricingstrategy a firm would pursue in that particular market. The article also concludes with a real...

...select a pricingstrategy for their new brochure. Dorset and Hampshire is a seasonal area with a higher occupancy in the summer time then the winter. This would have an effect on the pricingstrategy eventually chosen. Pricing is the only element of the marketing mix that does not represent cost. Therefore it is very important to gain the correct strategy otherwise the business can loose revenue or face...

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Different PricingStrategies
Penetration Pricing
Price set to ‘penetrate the market’
‘Low’ price to secure high volumes
Typical in mass market products – chocolate bars, food stuffs, household goods, etc.
Suitable for products with long anticipated life cycles
May be useful if launching into a new market
Market Skimming
High price, Low volumes
Skim the profit from the market
Suitable for products that have short life cycles or which...